Restaurant markups: What's reasonable?

Here's the mark ups in Md based on my experience as a broker for a bottle of French or Italian wine. This assumes the wine was shipped in a small container in moderate weather. "Reefers" are used if its winter or summer, these add to the cost.

For a case of wine at $40 US, FOB the Winery, An importer paid $44 to the winery(Takes care of my commission-which may be split with European "Partners")=$3.75 a bottle

Importer takes this $44 and adds to it the freight & customs costs lets say $8 a case and then adds at least 10%. So we have $58 or $4.83 a unit to a wholesaler

Wholesaler takes this $58 and adds shipping cost/taxes from Importers, lets say $2, and adds 35-45%(or multiples by 1.35 - 1.45. Rounding out that means a store or restaurant is going to pay $72 or $6.

The store will take a 50% mark-up to $8.99; a restaurant will do at least

300% or $27 . By the glass is caveat emptor but my guess is if its a high volume wine, $5 a 4oz pour should be about right.

There are all sorts of variables-adding "Reefer" costs-shipment in large containers, extra tax for sparkling wine and eliminating the broker.(Which was what happened to many times with bigger producers, after the first order we were expendable). Some Importers also are retailers and lower their mark-ups. Also in the case of exporters like Marc DeGrazia, they consolidate shipments for their producers to an importer. This saves a few dollars in shipping inside France or Italy but the exporter like the broker adds something(my guess $10-20%) to the price to an importer.

>
Reply to
Joe Rosenberg
Loading thread data ...

Reply to
gerald

I'm not familiar with DC restaurant mark-ups. Reasonable is what you're willing to endure. Some Md restaurants will take a "close-out" item marked down from lets say $18 a bottle to $4 by a wholesaler and still sell it on list for $45-54. Not passing a dime of savings on to the consumers. Most stores would blow the wine out at $6-18 and pass the savings on to their customers. Lots of restaurants keep names of producers and or vintage years off the wine list, just so they can take advantage of the extra profits from close outs.

Another beef of mine is pricing of low end wine. Some places won't price a wine for less than $20 saying "my customers don't want cheap stuff", even if it costs under $7 day to day. So entry level wines like Beaujolais, cotes du rhone, muscadet are way over priced.

Reply to
Joe Rosenberg

DrinksForum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.